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Palo Alto Networks (PANW) Outpaces Stock Market Gains: What You Should Know
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Palo Alto Networks (PANW - Free Report) closed the most recent trading day at $144.45, moving +1.58% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.96%. Meanwhile, the Dow gained 1.31%, and the Nasdaq, a tech-heavy index, lost 0.14%.
Coming into today, shares of the security software maker had lost 16.3% in the past month. In that same time, the Computer and Technology sector lost 7.82%, while the S&P 500 lost 0.41%.
Palo Alto Networks will be looking to display strength as it nears its next earnings release, which is expected to be November 17, 2022. In that report, analysts expect Palo Alto Networks to post earnings of $0.68 per share. This would mark year-over-year growth of 23.64%. Our most recent consensus estimate is calling for quarterly revenue of $1.55 billion, up 24% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.15 per share and revenue of $6.87 billion, which would represent changes of +25% and +24.87%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Palo Alto Networks. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.24% higher. Palo Alto Networks is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Palo Alto Networks is holding a Forward P/E ratio of 45.09. This valuation marks a premium compared to its industry's average Forward P/E of 37.61.
Also, we should mention that PANW has a PEG ratio of 1.43. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Security was holding an average PEG ratio of 2.39 at yesterday's closing price.
The Security industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 38, which puts it in the top 16% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Palo Alto Networks (PANW) Outpaces Stock Market Gains: What You Should Know
Palo Alto Networks (PANW - Free Report) closed the most recent trading day at $144.45, moving +1.58% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.96%. Meanwhile, the Dow gained 1.31%, and the Nasdaq, a tech-heavy index, lost 0.14%.
Coming into today, shares of the security software maker had lost 16.3% in the past month. In that same time, the Computer and Technology sector lost 7.82%, while the S&P 500 lost 0.41%.
Palo Alto Networks will be looking to display strength as it nears its next earnings release, which is expected to be November 17, 2022. In that report, analysts expect Palo Alto Networks to post earnings of $0.68 per share. This would mark year-over-year growth of 23.64%. Our most recent consensus estimate is calling for quarterly revenue of $1.55 billion, up 24% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.15 per share and revenue of $6.87 billion, which would represent changes of +25% and +24.87%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Palo Alto Networks. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.24% higher. Palo Alto Networks is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Palo Alto Networks is holding a Forward P/E ratio of 45.09. This valuation marks a premium compared to its industry's average Forward P/E of 37.61.
Also, we should mention that PANW has a PEG ratio of 1.43. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Security was holding an average PEG ratio of 2.39 at yesterday's closing price.
The Security industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 38, which puts it in the top 16% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.